The cases reported in this update continue to reflect the fact that IC misclassification cases cut across virtually all industries. Below are IC misclassification cases from such diverse industries as insurance, ride-sharing, restaurant, and the home heating and alarm industries. A Forbes article entitled “Is Your Company on the Independent Contractor Hit List,” written by a co-publisher of this blog and posted last June by Daniel Fisher, a senior editor at Forbes, lists 13 industries as being “in the crosshairs of [federal] regulatory agencies” and another nine industries being specifically targeted by one state, New York, which published a list of industries with the “highest incidence of worker misclassification.” The Forbes article also lists 22 industries “hit” by class action lawsuits.
What’s the takeaway from these industry-wide regulatory and class action proceedings? As one of our co-publishers was quoted in a March 28, 2016 article reported at the end of this update: “A business acts at its peril if it fails to properly structure and document the independent contractor relationship. That may seem like it’s just dotting your ‘i’s and crossing your ‘t’s, but many of the factors looked at by the courts are counter-intuitive. Most companies don’t even get close to doing it right. Even large companies like FedEx and Uber have had trouble getting it right, and their own documents have been used against them in misclassification lawsuits, sometimes at great expense.” While there is no simple answer, the co-publishers of this blog suggest how to do so in our White Paper on how to minimize the risks of independent contractor misclassification.
In the Courts (5 cases)
Regulatory and Enforcement Initiatives (2 items)
Other Noteworthy Matters (1 item)